Biden's latest push to take control of the inflation narrative
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The Biden administration released a memo to its allies outlining its actions to combat rising costs — and blaming Republicans for blocking its efforts.
Why it matters: It's an attempt to tell Americans that the White House is focused on bringing prices down at a time when voters are unhappy with the economy, and hold the president responsible for inflation.
- "President Biden's top economic priorities are fighting inflation and lowering costs for the American people," writes White House deputy press secretary Andrew Bates. "Standing up to corporate price gouging is at the core of that fight."
Catch up fast: The latest inflation figures show that prices rose 3.4% over the last year — much lower than the scorching levels seen in 2022 but still too high for comfort.
- Meanwhile, the economy overall is on solid footing — particularly the labor market. The unemployment rate has been under 4% for 27 straight months.
Between the lines: Biden generally doesn't get much credit for economic strength. Former President Trump polls better on his handling of the economy.
- The administration has struggled with its messaging around inflation — they know it's making Americans feel bad, and that there's not much they can do about it before the election, as Axios' Hans Nichols wrote recently.
- They argue inflation would get worse under Trump — "top economists warn that MAGAnomics would set off an 'Inflation bomb,'" Bates writes.
Zoom in: In the memo, the White House lays out the steps the administration is taking to counter "price gouging" by companies. The gouging keeps "prices elevated despite inflation falling," it says.
- For each of the actions the White House lays out, it's facing blowback — typically in the form of lawsuits from companies with the support of Republicans who practice "MAGAnomics," it says.
For example: Airlines are suing over a new Transportation Department rule that would require them to disclose fees upfront.
- The credit card industry is suing over a new Consumer Financial Protection Bureau rule that would cap credit card late fees at $8.
- Pharma companies including AstraZeneca and Bristol Myers Squibb have filed suit over provisions in Biden's signature Inflation Reduction Act that give Medicare the power to negotiate lower drug costs.
The bottom line: The White House is fighting two battles, one against inflation and the other against the economic narrative.
